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Re: kch21 Daily Fork
Thank you all for great observations. Personally, I never make projections and try pinpoint targets. I look at the present and I try to understand what the market is saying. The market is definitely steady of late including today but there are other factors that I think are interfering with this strength. I never look at either commercials and index long or short position but rather their net position as both categories do not show spreads. We also need to look at their delta positions which cannot be done with index. But if commercials have a greater net short position compared to the past, it is for good reason, ie Ď19í20 production that has been hedged. Warehouse stocks continue to reflect the result of this yearís production. Another gage is the direction of spreads. Today the market is 126.00+ in H yet spreads are on the weak side. The buying that is taking place in the outright market is speculative only while commercials are selling strength. I think that the combination of high stocks and damaged plants has created a bipolar market. Letís hope that the manic prevails, snd not the depressed.